Loans

So your electronic fairy godmother (or if you still prefer snail-mail, Mr. Postman) finally got around to delivering that big, fat tax refund check you’ve been waiting for. Woo-hoo! You’re not alone, there’s a lot of woo-hooing going on these days. As proof, here’s some tax time trivia for you—according to Bankrate.com, last year (tax year 2008) over 96,000,000 taxpayers saw a refund from Uncle Sam worth an average of $2,683. That was up from 2007’s $2,371. Of the 131.5 million tax returns filed, over 73% received returns. Four out of five people say they expect a return this year.

In the church of finance, personal responsibility is the high priest. It’s true that outside forces will affect your situation to a point, but only you can dictate how your financial life will proceed. With that in mind, let’s take a look at five “debtly sins” that can misdirect your financial well-being.

Get your receipts lined up. Rip open the W-2s. Sharpen those pencils and make sure you have plenty of erasers. It’s tax time, the season for crunching numbers and squeezing blood from a turnip. It’s a chore not many of us relish unless we expect a big return (and if you do, for shame, you’re giving the government an interest-free loan, but more about that at another time).

It’s not that we don’t receive breaks from Uncle Sam. Last year, nearly 46 million citizens itemized their taxes via the 1040 form and claimed nearly $1 trillion in deductions. Those using standard deductions claimed half a trillion dollars. Yet when you take us as individuals, who doesn’t want to pay as few taxes as possible, whether it involves getting a bigger return or owing less?

If you got engaged on Valentine’s Day, congratulations! Even if you got engage in recent months and are in the process of deciding all the details of your wedding, from flowers to keepsakes and everything in between, make sure you remember to cover one of the most important things before the Big Day––your and your intended’s money compatibility.

Of course, a successful marriage is one that allows enough room to accommodate each other’s individual opinions, tastes and style. Just because you like to blast Pink in the car while your fiancé prefers to relax to Michael Bublé doesn't mean your marriage will be headed for trouble. However, when it comes to how you handle money––both individually and as a couple––compatibility is critical if your marriage is to thrive.

Here’s a fun idea for your Valentine’s Day, treat yourselves to a “money date”! Okay, this may not seem quite as exciting as a night on the town, but it does provide a great opportunity to step back and discuss big-picture financial issues you don’t ordinarily give much time and thought to.

Start with the fun things — what are your dreams and goals for the future? Before your date, each of you should make a list of your financial goals, and then compare them over dinner as points of discussion. This is your chance to look beyond your daily financial needs and think big. Would you like to start a business? Go back to school? Own a vacation home? Take time off to be with young children? Travel in retirement?

So you gained a few pounds over the holidays. Who didn't? Now your daily planner has a reminder to eat less so you can lose that excess weight. And if you’re like most Americans, not only did you eat too much, you spent too much as well. It’s time to trim that budget right along with that waistline.

Of course, saving is the key to a healthy budget, and to save more, you must spend less. In other words, you need to put your spending on a diet. Sure, there may be a few hunger pangs, but in the end, your finances will be much healthier.